Lease End Plan DOA - Buyout Options?

[wangstarr03]

Hey all, this is more of a rant/vent more than anything else. My lease is up in September and my original plan was to execute a third party buyout outside of my 60 window (no later than end of July), take the equity (last I checked in Feb I had in excess of $10k) and get into something else. The refreshed GMC Sierra Denali Ultimate heavily stood out to me despite missing some critical “luxury” truck features my ’19 Limited already has: air suspension, pano roof, rear ventilated seats, etc but supercruise really intrigued me along with their awesome 6.2 v8 + 10 spd auto and massage seats. Well, GM recently announced they’re suspending production of supercruise and the 6.2 for the 2022 model year due to chip shortages and my other options are, well, less than ideal.

I only want another truck and Stellantis is pushing the DT refresh until next year, the F150 I’d only want with the 5.0 coyote and the redesigned Tundra, well, it’s nice but I’m not sure if it’s a worthy replacement but the lease residuals are insane high, especially compared to Ram. Outside of placing a factory order for an F150, which I’m not keen on as it would take too long at this point and put me inside the 60-day buyout window, my only real option is buying out my lease. (Ford also recently announced new orders will not include the required hardware for BlueCruise due to chip shortages).

My lease is through Chrysler Capital; anyone have experience pursuing buyout financing through them? Even though rates are continuing to go through the roof right now I’d really prefer to keep the bulk of my cash on hand just in case of emergencies due to the inflation situation, potential of recession looming, etc. For reference, my buyout is $31k and change at lease end. Not an ideal situation, I know. The timing is awful.

Thoughts? Other suggestions are of course welcome. FWIW, I do really love my truck. Thanks for listening to me b*tch and moan!

 

[Andymax]

Presumably your mileage is low...why not just buy out the lease, finance it to retain cash, and see what happens with the GMC, or whichever truck bubbles to the top of your list over the next few months. You still have the equity (though there is risk of equity drop if the market cools)...but end of the day you're still in good shape. Seems the least risky option to me.

 

[djevox]

Presumably your mileage is low...why not just buy out the lease, finance it to retain cash, and see what happens with the GMC, or whichever truck bubbles to the top of your list over the next few months. You still have the equity (though there is risk of equity drop if the market cools)...but end of the day you're still in good shape. Seems the least risky option to me.

In my mind, that’s the only good option here. I would 100% do a lease buyout. I would get quotes from every financial company I could find since rates keep rising right now. I would then take the lowest interest rate and either sell the truck for a profit, or keep it and wait out all the BS that’s going on in the car market right now.

OP- be aware though, most manufacturer analysts are estimating that things won’t go back to normal with production and shortages until 2025, and that’s just their assumption. We also have to contend with the recession we’re in, and who knows how bad that will get. Whatever you’re going to do, you should do it now.

 

[stax199]

I have same exact situation.. my 2019 loaded ram sport is up on lease in sept chrysler cap . Buyout is 32300 and truck has 24400 miles.. they wont let me extend lease without new car on order .. my current lease is super cheap. kicke dcheny tires and GMC love that new model but they want big bucks and say my ram truck worth nothing..

 

[Goldsy]

Me personally, I'd buy out the lease and keep the truck for a bit. Sure you have 10k in equity at the end of the deal, but truck prices are also inflated now with fewer deals out there. Having 10K in equity isn't as much $$$ as is seems with fewer and smaller discounts on the new models.

 

[2020GraniteBH]

Same boat my lease is up beginning of Oct. I love my truck and really have no complaints and I had the intentions of buying it out after I did multiple road trips as well as some light "off-roading" which then I threw some additions onto it. I would love to buy out and then sell for a PW but with the current market, that's not really the smartest thing to do.